Brick And Mortar Vs Ecommerce Analysis

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Register to read the introduction… First, e-commerce offers buyers maximum convenience. A consumer has the ability to visit multiple vendors’ web sites periodically throughout the day and compare prices and services without having to leave the comfort of their own home. This convenience gives consumers immediate feedback on exactly what they are looking for at the precise time. Second, e-commerce offers sellers an opportunity to reduce costs while at the same time provide market expansion since e-commerce is open to anyone with access to the Internet. E-commerce minimizes the need for a physical store as well as the need for staff members; thus reducing overall labor expenses. “Internet technologies also permit sellers to track the interests and preferences of their customers with the customer’s permission and then use this information to build an ongoing relationship with the customer by customizing products and services to meet the customer’s needs” (E-commerce advantages). Not only has e-commerce exploded over the past decade, but year after year, organizations are reaping the benefits of profitable earnings and successful customer service due to their ongoing ability to satisfy needs via the Internet. A fourth advantage e-commerce presents is lower transaction costs. The reason for this is because e-commerce employs an automated order tracking and billing system, therefore, allowing consumers to oversee the entire business cycle from ordering, building, shipping, etc. For example, Dell tracks each computer through the entire manufacturing and shipping process, thus, allowing customer to see exactly where their order is at any given time (The advantages of …show more content…
Firms that implement this movement can use the brick and mortar to promote the Web site and vise versa. This will save on promotional costs for the firm. Not only is this solution logical, it is powerful. Because consumers are different and desire different things, a click and mortar will be appealing to both the consumer who wants the personal interaction found only in a traditional retail setting as well as the on-the-go consumer who needs products at the tip of his/her fingers.
b. Supply Chain According to Boyer (discussed previously), firms that operate under a click and mortar model often employ a centralized extended supply chain. This supply chain utilizes regional distribution centers rather than local stores and also provides more personalized delivery service (such as pre-specified delivery times). One of the most successful companies in using the click and mortar model is Gateway Computer. Gateway’s main advertising campaign states, “Call, Click, or Come In” (Boyer, Hult,Frohlic). This promotion emphasizes Gateway’s ability to provide the same service in multiple ways.
10. Company

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